Dell buying Alienware for undisclosed price

Despite earlier denials (and despite pricing its own super-deluxe gaming PC just this morning), Dell has announced that it will buy Alienware, the Miami-based maker of specialty high-end gaming and media rigs. Speculation about the partnership began a few weeks ago, when the CEO of Alienware rival VoodooPC blogged that a deal was in the works, but the rumors were denied by Dell and Alienware. According to Michael Dell, Alienware will continue to be managed by its current executive team as "a standalone unit." However, the deal is still likely to frustrate those who consider Dell a commodity manufacturer, rather than a high-end specialist -- though it's sure to please AMD fans, given that Dell has long been an Intel-only shop, and Alienware has a broad line of AMD-based products.

[Thanks to everyone who sent this in]

[SL @ Mar 22nd 2006 5:49PM]

Just watch.... Alienware will shift it's product lines exclusively to Intel products.

[Gblue @ Mar 22nd 2006 5:56PM]

I would have to say that given Dell's influence in the PC world they would definately make change their product lines to Intel only. But I could be wrong as time will only tell.

[BonQ @ Mar 22nd 2006 6:01PM]

Alienware was smart to sell itself off now - gaming PC manufacturers are going to be feeling the pain for the forseeable future due to next generation gaming consoles.

[Sm1ddy @ Mar 22nd 2006 6:12PM]

I hope they don't commoditize Alienware...MOO! Guess the XPS line wasn't all it was cracked up to be.

How do gamers benefit?

[Marc B. @ Mar 22nd 2006 6:20PM]

I don't see Dell making Alienware all Intel. This is their chance to take advantage of access to AMD chips by sidesteping their own deal with Intel. They can now build performance machines without bloatware, concern about pricepoint, or worrying about how this would affect their customer base.

I bet they'll distance the Dell line away from specialty video editing/ XPS gaming and rigs, and channel all of that through Alienware. Dell will focus on it's core of home users, business, enterprise users.

Alienware will be their Ferrari, while Dell will stay the GM.

[wulff @ Mar 22nd 2006 6:25PM]

I disagree with you guys, i'm more inclined to believe that this could be Dell's way of subtley(sp?) snubbing his nose at Intel. "Sorry Intel, ya know, we just purchased them, we are not restructuring them in any way. We will let them run their shop the way the did, as long as it is sucessful." Now Dell is appeasing all those ppl that wanted AMD, has a strong gaming/media center precense, and is only mildy mucking w/ their Intel relationship.

Intel's recourse? 1 of 3 paths.

1: Raise chip prices (except now Dell will have "in house" AMD, so this could be bad for Intel).
2: Lower chip prices, or add incentives (probably not signifigant enough to convince Dell to change)
3: Do nothing

I could be wrong.. but thats IMHO

[Slartibartfast @ Mar 22nd 2006 6:30PM]

So Dell flat out lied to the public and its shareholders. What kind of credibility are they attempting to portray? What else have they lied about and what will they lie about in the future?

[Richard @ Mar 22nd 2006 6:35PM]

"So Dell flat out lied to the public and its shareholders. What kind of credibility are they attempting to portray? What else have they lied about and what will they lie about in the future?"

Give me a break... by your logic, ALL corporations have no credibility, ESPECIALLY THE HOLIEST OF HOLY AROUND HERE, APPLE.

[corporateninja @ Mar 22nd 2006 6:37PM]

#5 - deals are made behind the scenes all the time...it's not lying if they don't tell you ahead of time. It's to prevent unfounded speculation in the market.

I agree with wulff - this was actually an extremely shrewd move by Dell. They corner the market with high end/high margin systems AND they get their foot in the door with AMD, without destroying the Intel relationship that they leverage.

[Twist @ Mar 22nd 2006 6:55PM]

You buy a Dell because you can't build them that cheap yourself and you don't buy an Alienware because you can build them cheaper yourself (the case just isn't as cool). Maybe this deal will result in a decent middle-ground compromise: a decent Alienware machine that costs about the same as what you would spend on a DIY system.

[Revrant @ Mar 22nd 2006 6:55PM]

I don't think they're try to force Alienware to an Intel-only focus, for one Alienware will falter if they do that. Secondly they'd have to oust most of the power-holding staff to accomplish that considering the large AMD focus and mindset, and then considering Dell has shown interest in AMD before, which leads me to believe they'd be more than happy to benefit through another party.

I think the deal either means the XPS line hasn't been the success they make it out to be(Still partially incapacitated due to "rofl" at a Pentium-only gaming platform), so they want to eliminate the competition, or the more likely conclusion being to snubb Intel and get in on that sexy AMD action by living vicariously through Alienware.

[Jimmy @ Mar 22nd 2006 7:10PM]

I really doubt Alienware's gonna change their product line again. You guys should read what Alienware had to say.

http://alienware.com/Intro_Pages/aw_announcement.aspx

Doesn't sound like anything is gonna change really...

[Dipset @ Mar 22nd 2006 7:51PM]

I hope to God that this makes their insanely priced laptops cheaper.

[Jake @ Mar 22nd 2006 8:05PM]

Their website resembles Dell's. It's kinda scary.

[Manuel @ Mar 22nd 2006 8:25PM]

I agree with Jake. I was disgusted that Alienware's site now looks like Dell's. In my mind, Alienware machines are elite and unique, but to make the website reflect Dell's look and feel cheapens the product. Put the site back the way it was.

[Will @ Mar 22nd 2006 10:02PM]

Here's the deal. Alienware management will be forced out because Dell will pull the "We love you and we don't want to change anything. But here are a few suggestions" BS. Management at Alienware will eventually leave, and Alienware will just be absorbed into Dell. I don't care what anyone says, I have seen corporate giants take over small, succesfull, and well know companies, and it is the same story everytime. Dell did not get where it is because of thier stunning design. They got there because of the price, and a company that is run that way has no interest in maintaining a company that is not as pofitable.

[Dull @ Mar 22nd 2006 10:42PM]

Of course Dell is gonna change Alienware, it's just a matter when, they aren't buying the company because they never whant the company to change...

[E @ Mar 22nd 2006 10:46PM]

#5 You're an idiot. No corporation let's that kind of info out until the deal is done. Duh!

#11 Alienware uses Clevo Laptops - the OEM manufacterer for Alienware, Sager, Boxx, and some of the Voo Doo laptops.

Look for Sager, they're the most reasonably priced of all of them, same damned thing too.

[SRD @ Mar 23rd 2006 12:57AM]

I would get a sager over Aliencrap anyday at least their laptops dont break on you like the junk alienware puts out. i hope dell changes alienware because from all the reviews of alienware they service support and hardware is far behind dell and thats not saying much knowing dell.

[Silver @ Mar 23rd 2006 1:46AM]

"ESPECIALLY THE HOLIEST OF HOLY AROUND HERE, APPLE"

Nicely done Richard (or do you go by...oh, never mind). You managed to inject a little Apple hatred into a non-Apple-related thread. Funny how that happens. And funny how such a niche company with insignificant market share manages to get under the skin of so many blathering dolts on this site.

[play free games @ Mar 23rd 2006 4:05AM]

I think this is a good business move on the part of Dell to capture the high end / gaming section of the PC business. As much as Dell's mangement says they won't change things, the will eventually to reduce costs and/or increase sales.

[jmel @ Mar 23rd 2006 6:52AM]

I think acquiring Alienware will benefit Dell a lot and it's also one way for Dell to have a relationship with AMD since this has been an issue before. Dell really knows their business but how about Alienware? According to Gonzales of Alienware, they need capital to expand their business that's why they accepted Dell's offer but did they made the right choice? I think Dell is only using Alienware for their own benefits but who am I to judge them? One thing I'm sure about this acquisition is that Dell will benefit a lot from this.

[Shaun Andrews @ Mar 23rd 2006 10:09AM]

I used to work at Alienware (in the web department) and when the rumors started flying, I was a little concerned for my friends jobs. But it seems as though things are working out just fine. Alienware is really going to benefit from this in a huge way. They'll get a huge marketing budget, and it will increase their leverage with vendors.

And to all of you who think Alienware has recently changed their site to look like Dell, your retarded. The site hasn't has looked simliar for the last 3-4 months, long before the acquisition rumors started. I know for a fact (as being a former web employee), that Alienware has always looked to Dell for inspiration on the web. After all, Dell is the market leader. It only makes sense to look at the leader and try to follow them in some way. Alienware just does so with style...

I'm happy for the guys at Alienware, they've worked hard and deserve this.

[Antonio @ Mar 23rd 2006 11:03AM]

even thou Dell buy Alienware, gamers that really know about computers will know for sure that building your own computer comes out less less cheaper and way better than buying Dell XPS or those Alienware rip off pc's.

[Phil @ Mar 23rd 2006 12:48PM]

Dude, you're getting an Alien!

[PorradaVFR @ Mar 23rd 2006 1:52PM]

From Nelson Gonzalez's release: "an Alienware that takes advantage of the world-class business practices and operational efficiencies that have made Dell one of the most respected companies in the world"

Sadly this is almost a guarantee that Alienware's US-based manufacturing will be a thing of the past. As a former employee, I greatly respected their commitment to keeping their systems truly Made in the USA. Personally, I don't see how a premium BTO brand like Alien can mesh with Dell without significant changes to both management and brand equity, but I certainly wish them luck.

[David @ Mar 23rd 2006 7:48PM]

Dell's relationship with Intel goes all the way back to his college years. Michael Dell has only sold Intel chips because they started shipping him chips direct when he was working out of his college dorm room. I doubt that Dell is buying alienware because they can step into the AMD market, it's a ridiculous idea if you know their history.

[azrin @ Mar 28th 2006 2:53AM]

hmm... this cool. suitable for heavy gammers.
arnV :)

[zionads @ Dec 13th 2007 6:54AM]

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